Would gratuity be considered a form of collusion?

Eat at home. Gratuity cartel smashed!

I’m not arguing about the scope, I am arguing that it is not cartel, but convention.

No comment on this?

Whether the price is built in or not, the consumer always pays. In fact, you could argue that because gratuitites are not compulsory, it is the service staff who stands to lose in a system where gratuity is the norm. Wait staff get stiffed on tips all the time, and in Canada at least, tips usually get shared with the kitchen and dishwashers.

I remember being suprised at this over in the US.

As concerns the OP, gratuity serves a certain purpose. In a restaurant there’s a certain principle agent problem with regards to the waiters and the management. Tipping helps remove the perverse incentives to some extent.

I remember being suprised at this over in the US.

As concerns the OP, gratuity serves a certain purpose. In a restaurant there’s a certain principle agent problem with regards to the waiters and the management. Tipping helps remove the perverse incentives to some extent.

No. Collusion is when they agree to have the same price. Having the same gratuity rate doesn’t count.

Sure, but the principle agent problem are surely not satisfied by fixed gratuity. A large party pays the 18% regardless of the service. Now, you could argue that there is an incentive to bid up the price of the bill by asking for desert, etc.

the waiters, chefs and restaurant owner are colluding with each other to bring about a sense of gratitude within you. thats the only collusion i am aware of.

Then what title would you give to such an occurrence–whereas companies of nearly a homogeneous product (not food, but sit service) increase costs by nearly the same percentage for a fixed group?

inflation.

Competitive bliss!

Those bastards. Trying to screw over the customer by making him happy. Who the heck do they think they are?